A decrease in currency in circulation combined with an equal increase in savings account deposits would:
A) increase M1.
B) have no effect on M1.
C) increase M2.
D) have no effect on M2.
E) decrease M2.
Correct Answer:
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Q37: Money almost always serves as the standard
Q38: A depositor cannot directly write checks against:
A)demand
Q39: Paper money in the U.S. is:
A)fiat money.
B)more
Q40: Nontransaction deposits:
A)are near money assets.
B)are the money
Q41: Which of the following is true of
Q43: Money market mutual funds:
A)are highly liquid assets.
B)defer
Q44: A bank's capital is:
A)the value of all
Q45: In which of the following situations will
Q46: Which of the following generates profits for
Q47: Banks create money by:
A)making loans.
B)offering bonds at
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